House Democrats Might Kill Obama’s Tax Deal

As much as I don’t want to see anyone’s taxes go up next year, I still don’t like the tax deal the Republicans worked out with President Obama. The unemployment extension isn’t paid for, and taxing people for dying is just wrong. They’ve already paid taxes on that money, why should they pay again? As The Other McCain said, it’s theft. The current tax deal, the one that passed the Senate, will “only” tax estates at 35%. That’s not good enough for House Democrats, they want more.

House Rules Committee Chairwoman Louise Slaughter (D-N.Y.) said no plan has been finalized, but Democrats are eyeing a strategy of voting separately on an amendment hiking the estate tax rate proposed in the Senate-passed bill. The initial House rule wrapped that amendment into the larger bill.

“We don’t have a timeline,” Slaughter said.

Rep. Jim McGovern (D-Mass.), a Rules Committee member and floor manager for the tax bill told reporters that Democrats are “just trying to work out some kinks.”

He characterized the decision to pull the procedural measure off the floor as “a bump” and said he did not think the House would have to delay a final vote past Thursday. Yet, he said it was unclear what the next move was, and that Democratic leaders were huddling over how to proceed.

I still don’t understand why we have an inheritance or estate tax. I don’t think we should be taxed on our 401K when we finally cash it out. I don’t care if most or all of that money is deducted before taxes from our checks and put into that account. Between the market fluctuations and broker fees, we’ve already paid enough. We are encouraged to save, yet when it comes time to have that money – half of it is gone because of taxes.